A project to deliver a new children's hospital in Edinburgh has reached a major milestone, officials have revealed.

Integrated Health Solutions Lothian have been selected as the preferred bidder to design, build and maintain the new Royal Hospital for Sick Children and Department of Clinical Neurosciences at the Royal Infirmary of Edinburgh site.

Work on the project is scheduled to begin in autumn 2014, with the hospital opening in summer 2017.

It is the first acute hospital facility to be procured under the Scottish Government's Non Profit Distributing (NPD) model and the NHS Lothian team have been working closely with Scottish Futures Trust and the Scottish Government to prepare for the procurement process.

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Susan Goldsmith, Director of Finance, NHS Lothian, said: "The selection of a preferred bidder follows an extensive and thorough evaluation process.

"This announcement marks a major milestone in what is an extremely exciting project for the people of Lothian and beyond.

"The development will prove significant in shaping the future of care by bringing children's maternity and adult services together on the same site.

"It will build on the existing centre of excellence, creating a major trauma centre and providing opportunities for sharing experience, expertise and research."

Cabinet Secretary for Health and Wellbeing, Alex Neil MSP, added: "I am delighted to see the positive progress being made in the delivery of this dedicated new children's hospital and national centre of excellence for clinical neurosciences.

"NHS Lothian has worked hard to get the project to this important stage and I look forward to hearing how they work with Integrated Health Solutions Lothian to commence construction later this year."

(JP)